Danfoss Talks to Indian Firms on Hybrid Car Power
Danish company Danfoss is looking at the Indian automobile sector in a major way and is in talks with some automobile makers for providing its solutions for hybrid cars, said a top official.
The 5.3 billion euros turnover privately held company is a world leader in heating, ventilation and air conditioning (HVAC) sector. The company's business segments are classified under Power Solutions, Cooling, Drives and Heating. “We are looking at anybody making hybrid cars. We have power module solutions that have 15 times more life than others,” Kim Fausing, President and CEO told IANS.
While Danfoss is having talks with Indian companies, Fausing declined to reveal their names. “We have proprietary technology. Already our solutions have been put in around 25 million cars in Europe. We are looking at hybrid and electric cars. We work with German auto makers and US OEMs (original equipment manufacturers),” Fausing added.
Danfoss has invested in a power module plant in the US at an outlay of around USD 100 million. The company is also mulling to invest in China, a major market for its products. “We bring in innovation in energy efficient solutions. We focus on application of equipment and build efficiency in that,” he added.
Fausing said Danfoss has big focus in the American and Chinese auto sector. The Danish company makes power modules for inverters and others and is part of its drives business. Danfoss' power modules are used in farm machines with hydraulic motors, earthmoving equipment and others.
According to a Danfoss official, automobile sector is a related business for the company and is part of its drives business. For instance, batteries of electric cars should be cooled quickly for fast charging and Danfoss has the solution as it is a major in the HVAC segment. The Indian Government is for electric mobility. Recently, Energy Efficiency Services Ltd a joint venture company of undertaking coming under the Indian Power Ministry decided to buy 10,000 electric vehicles.
Fausing said Danfoss is also looking out for acquisitions in India in the technology space. Speaking about Danfoss' operations in India, Fausing said India figures in the top eight-nine market for the company globally. “For us India is important like China and the US. India can be top three markets for Danfoss after US and China,” Fausing said. Major customers for Danfoss in India are Blue Star, Mahindra and others. Major customers for Danfoss in India are Blue Star, Mahindra and others. On Danfoss global business, Fausing said the group logged 13 per cent growth of which nine per cent is organic and the balance four per cent is from acquisitions.
“There is a positive momentum and the dynamics of the market is picking up,” he added. He said the company has changed its old structure and now has new global executive programme with broader leadership team. Danfoss is transforming its business with digital agenda. Fausing said Danfoss is investing heavily in its information technology backbone to get data on real time basis, internet of things (IoT), big data, and artificial intelligence. Queried about the possible disruptive technologies that may take down Danfoss and others, Fausing said he does not foresee any threat that would make the company irrelevant.
He said the company is investing in technology and acquiring technology companies.